The term of a bond is:
A)the interest rate of the bond
B)the credit risk rating of the bond
C)the principal amount of the bond
D)the length of time until the bond matures

Question

Quizplus · Accepted Answer

The term of a bond refers to the length of time until the bond matures, at which point the principal amount of the bond is repaid to the bondholder. Therefore, the correct choice is D. A refers to the interest rate, B refers to the credit risk rating, and C refers to the principal amount, none of which are the same as the term of a bond.

The Term of a Bond Is